FATF Status

Ireland is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Ireland was undertaken in 2022. According to that Evaluation, Ireland was deemed Compliant for 17 and Largely Compliant for 17 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 5 of the Effectiveness & Technical Compliance ratings.

Corruption is not a significant issue for foreign investors in Ireland, as the country has robust anti-corruption legislation, including the Criminal Justice (Corruption Offences) Act of 2018, which enforces strict penalties for bribery. While companies may face bribery risks at the local level, particularly in public procurement, the government is actively reforming its anti-corruption measures to enhance transparency and accountability. The upcoming Criminal Justice (Corruption) Bill aims to consolidate existing laws and strengthen penalties, reflecting Ireland's commitment to combating corruption.

Ireland's economy faced a recession in 2023, marking its first decline since 2012, primarily due to a contraction in exports from the pharmaceutical sector. Despite this setback, the GDP is projected to grow by 1.2 percent in 2024, supported by a strong labor market with an unemployment rate of 4.5 percent and record employment levels of 2.71 million. The government continues to attract foreign direct investment, particularly from the U.S., although challenges such as high operating costs and energy supply issues persist.

Ireland's investment climate is characterized by a strong emphasis on attracting foreign direct investment (FDI), particularly from the United States, with approximately 950 U.S. subsidiaries operating in various sectors. The government has successfully promoted a favorable business environment, bolstered by a well-educated, English-speaking workforce and a stable political landscape, although the recent increase in the corporate tax rate from 12.5% to 15% may impact its attractiveness. Challenges such as high labor costs, planning permit issues, and energy supply concerns, particularly for data centers, pose risks to future investment.